Balance Due on Completion:
The amount of money the purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made.
Blended Mortgage Payments:
Equal or regular mortgage payments consisting of both a principal and an interest component applied in a way that the payments remain constant in amount, although the portions attributed to principal and interest vary with each payment.
Breach of Contract:
Failure to fulfil an obligation under a contract. Breach confers a right of action on the offended party.
Money borrowed against a homeowner's equity in a property (usually for a short term) to help finance the purchase of another property or to make improvements to a property being sold.
A person who legally represent another. In real estate, a professional licensed in Canada to facilitate the sale, lease or exchange of a property.
A situation where the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and market rate directly to the lender. Or, the difference can be paid to the purchaser in one lump sum or monthly installments. A buy-down can make a property more attractive to potential buyers.
Regulations established by the federal, provincial and local goverments providing for minimum acceptable requirements for building construction.
Bundle of Rights:
A concept in which rights of possession, use, enjoyment, and disposition comprise the rights of ownership. The highest level of ownership rights is fee simple.
For more terminology and jargon check:
Regardless of how certain you are that you will get mortgage, it is always good idea to get pre-approved from the mortgage lender of your choice. This will officially address any questions about your eligibility, rate, terms and it will enable you to better negotiate for the property of your choice.
Credit scoring model seeks to quantify how likely the consumers are to pay off their debt without being late. The more your credit file demonstrates that you pay your debt on time, the more desirable you become as a potential customer. The higher the client's score is, the less likely they are to default on their loan.
Familiarize yourself with the fundamentals of real estate before you invest in your first property.
Make sure your information is up to date. You have to know and be realistic about today's real estate market.
Location matters, so before you buy any real estate property, ensure that it's in a good location.
Regardless of how certain you are that you will get mortgage, it is always good idea to get pre-approved.
Keep in mind, the commission is always negotiable upfront, before you sign a contract.
If you are working with agent, make it clear that you want the agent, not his/her assistants, to represent you.
Before you buy any real estate property, have it inspected by a professional home inspector.
If you are buying property with a partner, have a proper partnership agreement to protect both of you.
Make sure you read your listing or buyer’s agreement carefully before signing it.
Don’t skip the final walk-through to make sure that everything is done properly, and that the items you agreed should stay are still there.
Location is an investment too and can also affect property values and property taxes. More...
Learn how to take advantage of government programs available to first-time home buyers. More...
Knowing what to expect will help you make an informed decision about the value and the future upkeep. More...
Don't forget closing costs; they vary greatly by location and they are also relative to your house price. More...
Pack a box of items that will be needed first at the new house. Clearly mark this box "Load Last." More...
Although not complete, the glossary of real estate terms will help you with some of the more common terms. More...